TikTok creators explore alternative income sources amidst growing threat of U.S. ban

• As political tension rises, Charli D'Amelio is seeking to expand her business beyond TikTok.
• D'Amelio's family is collaborating with Shopify to introduce its shoe brand in temporary retail locations.
• D'Amelio stated in an interview at the New York pop-up store on Friday that social media is fleeting.

Dixie and Charli D'Amelio, the 19-year-old former competitive dancer, have made tens of millions of dollars as the second-most followed creator on TikTok.

TikTok's potential ban could affect D'Amelio's ability to create and share short videos with her 152 million followers, as a bill supporting such a ban has already gained support from President Biden and is set to be debated in the House.

D'Amelio is partnering with to bring her family's online shoe brand to physical stores, uncertain of which way the political winds will blow.

"D'Amelio emphasized in an interview at Shopify's D'Amelio Footwear Pop-Up in New York on Friday that social media is constantly evolving, with new apps, people, and trends emerging. As a result, it's important to remember that being first in line for everything is not always possible."

At the store opening, D'Amelio and other family members spoke to CNBC about the political and national security concerns surrounding TikTok, prompting creators to explore alternative ways to market their brand.

"Marc D'Amelio, CEO of D'Amelio Brands and father of Charli, stated that starting a brand allows individuals to break free from the cycle of social media, leading to less dependence on the platform."

Last week, the House Select Committee on the Chinese Communist Party introduced a bill requiring ByteDance to divest TikTok or face a U.S. ban. The committee voted 50-0 to send the bill to the House floor on Thursday. Biden announced on Friday that he will sign the legislation if Congress passes it.

U.S. regulators and lawmakers have expressed concerns about TikTok CEO Shou Zi Chew's denial of ties with the CCP and the possibility that user data could be shared with the government due to the app's Chinese ownership.

Charli D'Amelio acknowledged that there is always a bit of fear associated with social media due to its unpredictable nature.

In 2019, D'Amelio gained popularity on TikTok and two years later, she was named the platform's highest-paid creator by Forbes. She and her sister made a combined $27.5 million that year, according to the magazine.

TikTok's Creativity Program rewards popular videos that are longer than a minute, allowing users to earn money through the app. In addition, creators can make money through brand partnerships, affiliate sales on TikTok Shop, and followers can send users "gifts" during livestreams.

The D'Amelio family, known for their rise to fame, has been showcased on Hulu's reality series "The D'Amelio Show" for three seasons. Additionally, the sisters have collaborated with several fashion brands such as Prada, Burberry, and Puma.

In 2022, the family launched D'Amelio Brands, which includes D'Amelio Footwear and Be Happy Snacks. The venture raised a $6 million seed round from notable investors such as Fanatics CEO Michael Rubin, entrepreneur Richard Rosenblatt, Eddy Cue, Senior Vice President of Services, and Fifth Growth Fund last year.

The D'Amelio family collaborated with Shopify to sell its shoes at pop-up events in Los Angeles and New York, utilizing the company's point-of-sale system.

D'Amelio Brands aims to open a permanent brick-and-mortar store, connecting the digital creator economy with the physical retail world, according to Shopify.

Since 2019, there has been a significant change in consumer behavior, as evidenced by Shopify's fivefold increase in offline sales.

In an interview, Jessica Williams, Shopify's Director of Brand Partnerships, stated that fans are eager to visit and interact with the brand, meet the creators, and touch and feel the products.

In 2023, offline sales made up $441 million of Shopify's $7.1 billion in revenue, which is approximately 6% of the total. This revenue came from payments, subscriptions, and point-of-sale hardware.

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